IHG Acquires 51% Stake In Regent Hotels
IHG has announced that they are acquiring a 51% stake in Regent Hotels for $39 million in cash, with the right to acquire the remaining 49% stake in a phased manner from 2026.
The transaction is expected to close in the second quarter of 2018 & IHG will be paying $13 million in 3 phases,
- payment will be when the deal closes,
- the second in 2021,
- the third in 2024.
IHG plans to bring Regent into its brand portfolio at the top end of the luxury segment. There are only 6 Regent properties, though IHG hopes to grow the Regent footprint to 40 hotels in key global gateways over the long term.
One other thing that’s interesting is what IHG is doing with the InterContinental Hong Kong.
The InterContinental Hong Kong is IHG’s flagship property, and it’s closing for a full overhaul. The hotel will be closing in early 2020, and in early 2021 the InterContinental Hong Kong will reopen as a Regent.
What makes this interesting is that the hotel first opened in 1980 as a Regent, before being sold & rebranded as an InterContinental in 2001. So the hotel will once again be going back to its original branding.
Regent has hotels in Beijing, Chongqing, Porto Montenegro, Berlin, Singapore & Taipei, and they have hotels under construction in Harbin, Jakarta & Phu Quoc.
They’re a nice hotel group, with so few hotels, it’s tough to get excited.
I think we’ll learn within the next few months if Regent will be fully integrated into IHG Rewards Club. I wonder if the awesome anniversary free night certificate offered with the IHG® Rewards Club Select Credit Card will be valid at their hotels.